Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Prosper.com
Old 01-31-2007, 10:04 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,288
Re: Prosper.com

Quote:
Originally Posted by Laurence

Quote:
Quote from: ERD50 on Today at 07:31:53 PM
What makes a pay-day loan place 'evil'? They offer a service, if you don't like the terms go somewhere else.

Now, if they *misrepresent* the terms - that is evil. It is also illegal, so lock 'em up for breaking the law.

-ERD50
Just like a crack dealer! Most of the Marines around here get stuck in a cycle they can't break out of, paying the usery rates with a larger and larger percentage of their paycheck, and having to take out more loans because they run out of money even earlier in the month. Many are losing their clearances and can't serve overseas. You can blame the Marines, but the bottom line is these "lenders" leave carnage in their wake.
Well, I don't like crack dealers, that's for sure. But, I think people need to take responsibility for their actions. If people get stuck in a cycle of borrowing, they have a problem. I'm not sure I want to blame the loan makers for that (again, unless they misrepresent the terms). In theory, a pay-day loan could be a very useful thing for a poor person in a bind. Maybe they need it to get their car fixed so they can go to work to earn that next paycheck. Taking away the pay-day loan would send these people where - to 'mob money', or, they lose their job? But certainly, reliance on loans will be an ugly downward spiral.

I see the real problem in your example, is those Marines that want to spend more than they have. Are you saying the availability of the loans increase that behavior? Those people are acting stupid - can you fix 'stupid'?

I don't think prohibition is the answer to these kind of problems. It didn't work in the US in the 20's and 30's. Education, and 'truth-in-labeling' laws can help. Then, people need to make a choice.

-ERD50

__________________

__________________
ERD50 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Prosper.com
Old 01-31-2007, 10:18 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Re: Prosper.com

The Washington Post covered them recently:
"Want to Lend Me Money? Here's a Picture of My Dog"
http://tinyurl.com/2y6kzy

The site is interesting, but I think the least risky thing to do is borrow, not lend. I am a little surprised this group is so negative. I do think the Payday Loans are abusive, if not evil.
__________________

__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Re: Prosper.com
Old 01-31-2007, 11:01 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,288
Re: Prosper.com

Quote:
Originally Posted by jazz4cash
I do think the Payday Loans are abusive, if not evil.
I guess I would only consider them abusive if they misrepresent the terms (and some probably do, and should be shut down). I'm not real big on trying to protect people from themselves if the facts are in front of them. They need to learn to make a decision.

I do think there should be some limit (maybe there is?), so that people can't just keep cycling through it - it should be for an emergency only thing. Yes, I don't think you can protect people from themselves, but I guess I don't want to see the govt 'condone' bad debt (ironic statement, isn't it?). But, a very occasional pay-day loan might be needed by some people, so I'm not sure they should be made illegal.

And the 'usary' rates I've heard mentioned before - well, IIRC, they don't really stand up to scrutiny. I mean, if you are going to make a single $200 loan to someone for 1 week, you need to charge, say $20 or so just to cover your cost of doing business. But, that $20 is 10% a week, or 520% a year. Sounds terrible when they report it like that on the news, but...it is $20. Would you do it for less?

From that line of thinking, lotteries should be shut down also. I at least don't think the govt should sponsor/condone them - it is like telling people that gambling is better than working and investing. I think they misrepresent the odds with their glitzy ads (they never mention the odds in the ads - do they?). A pay-day loan actually could serve a purpose for someone. The odds in a lottery are so extreme it is unimaginable to consider anyone having an expectation of being 'served' by it. Even the winners had no right to 'expect' it could help them.

-ERD50

__________________
ERD50 is offline   Reply With Quote
Re: Prosper.com
Old 01-31-2007, 11:21 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Re: Prosper.com

Humm, a Marine doesn't want to go to Iraq. All s/he needs is to get behind with a pay-day lender?? If I were their Momma I would say, "Go for it." I would pay the slime-bag back after we are out of there, your life is worth many times that much!!
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Re: Prosper.com
Old 01-31-2007, 11:42 PM   #25
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Prosper.com

Quote:
Originally Posted by Brat
Humm, a Marine doesn't want to go to Iraq. All s/he needs is to get behind with a pay-day lender?? If I were their Momma I would say, "Go for it." I would pay the slime-bag back after we are out of there, your life is worth many times that much!!
Being in debt may remove a Marine's security clearance, but it won' t keep them from being deployed to Iraq.

The gunny sergeants have to assign their Marines to various teams. One team (we'll call it the rapid response team) may get extra schools, extra training, and the privilege of working with other U.S. & allied forces for which they'd need a security clearance.

The other team may be in charge of establishing security perimeters around IEDs. No special training required, just extra body armor (hope they didn't sell their issued armor to a surplus store or a collector for a little extra cash).

Guess which team the indebted Marines will end up on.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Prosper.com
Old 01-31-2007, 11:56 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Re: Prosper.com

Well, it was a thought.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Re: Prosper.com
Old 02-01-2007, 12:40 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
Re: Prosper.com

Quote:
Originally Posted by ERD50
Well, I don't like crack dealers, that's for sure. But, I think people need to take responsibility for their actions. If people get stuck in a cycle of borrowing, they have a problem.
A minimum wage job doesn't allow for a whole lot of flexibility when something goes awry. It's easy to imagine how a pay-day loan cycle develops.

OTOH, some of my tenants get their cars re-possessed, call me to replace the garage door opener that was in said car, and then call a week later asking for permission to install a dish on the side of the house.
__________________
eridanus is offline   Reply With Quote
Re: Prosper.com
Old 02-01-2007, 03:41 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,451
Re: Prosper.com

IIRC, there is a law capping the interest rate that deployed serviceman can be charged. I believe it is in 6%. So I think the payday loan boys are SOL if that happens. There was a thread about it on the Prosper discussion boards. My opinion was that I would be fine with capping my interest rate to serviceman. Of course as someone pointed out I didn't have any loans to serviceman (since changed).
__________________
clifp is offline   Reply With Quote
Re: Prosper.com
Old 03-03-2007, 06:39 PM   #29
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 143
Re: Prosper.com

Quote:
Originally Posted by Peaceful_Warrior
I've been investing through prosper for a few months now, and so far am impressed overall with the system and the returns.
I started lending money on Prosper last July. I've made over 200 loans at $50 a loan. My projected return after fees and defaults is 12%. These loans are unsecured and therefore risky, which is why I have well under 5% of my net worth there. I consider people-to-people lending to be a new asset class and my money on Prosper is risk capital to try it out.
__________________
rogersteciak is offline   Reply With Quote
Re: Prosper.com
Old 03-03-2007, 06:55 PM   #30
Thinks s/he gets paid by the post
cube_rat's Avatar
 
Join Date: Jul 2005
Posts: 1,466
Re: Prosper.com

Never mind loan defaults, I see creative scams on the horizon. and not from the lender side either...
__________________
fuzzy? cute?
cube_rat is offline   Reply With Quote
Re: Prosper.com
Old 03-03-2007, 10:04 PM   #31
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Prosper.com

Cube_rat, no! Why the goddess avatar again?? Arg!
__________________
laurence is offline   Reply With Quote
Re: Prosper.com
Old 03-04-2007, 12:27 AM   #32
Full time employment: Posting here.
 
Join Date: Dec 2006
Posts: 509
Re: Prosper.com

What kind of creative scams? I'm guessing without identity theft, the scams will be limited to "I need X amount of dollars for [insert heartwarming good reasons here]" and then the person jus chooses to default with the money.

This would also be good to know now that I have my own group on there. My risk is still limited though to a little over a grand. Enough to test the waters, but not enough to feel bad about losing it all (which won't happen, but I try to never invest money that I'm 'afraid' to lose).

Quote:
Originally Posted by cube_rat
Never mind loan defaults, I see creative scams on the horizon. and not from the lender side either...
__________________
Peaceful_Warrior is offline   Reply With Quote
Re: Prosper.com
Old 03-04-2007, 08:25 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Prosper.com

Quote:
Originally Posted by Laurence
Cube_rat, no! Why the goddess avatar again?? Arg!
She's left me with no choice.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Prosper.com - Be a Banker Jeb-NY Other topics 12 03-22-2007 12:39 AM

 

 
All times are GMT -6. The time now is 07:58 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.